Developers have been pushed to start bidding for housing project sites again in Melbourne and Sydney as the annualised rate for property prices increases by a drastic 20%. In just 31 days Melbourne’s house prices grew by 2.3% which is the fastest rise in 10 years.
Buyers have been motivated by the Reserve Bank’s three interest rate cuts with enquiry levels jumping by 30 to 50% from earlier in the year.
With unit prices on track to increase at 20% for Melbourne annually and 16.8% for Sydney, Real-estate agents have been made aware of the pick-up in demand from developers.
“We expect dwelling prices to continue to lift from here” said senior economist, Kristina Clifton – “Yesterday’s building approvals data showed approvals are now running at or below underlying demand. An undersupply of dwellings would also add to upward pressure on dwelling prices”
It is estimated that the residential construction sector could potentially fall out earlier than expected with developers foreseeing the future of housing supply by bidding on sites for new apartment and housing projects. Due to this, vendors of key developments have been confident enough to bring their projects to the market as developers were making progressively competitive bids.
Griffin Projects Group currently have 13 developments in progress with 10 developments in Western Australia, 2 in Adelaide and 1 in Melbourne. Our Camberwell apartments in Melbourne will be located approximately 7.5km east of the Melbourne CBD within the suburb of Camberwell, a highly sought-after suburb with its leafy greenery, cafes, restaurant’s and multiple retailers as well as easy access to Melbourne CBD, train station and tram services.
If you are ready to jump into the property market, looking for an investment or wanting to downsize then click here to view or projects.
This is a summary of the article House prices surge sparks rush to build by Ingrid Fuary-Wagner and Matthew Cranston | The Australian Financial Review | November 1st, 2019.